Is Your Money Advisor Qualified? (RR vs. RIA)

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Pop quiz! What’s the difference between a “financial advisor,” an “investment advisor,” and a “wealth manager”?

These are just a few of the job titles you may encounter in the personal finance and investing advice space.

Unlike a doctor, these titles are not regulated by law.

Anyone can adopt one of the titles above or similar.

What is regulated is what an individual can do while using one of these titles.

There are “titles behind the titles” that carry the force of law, and they’re essential for you to know.

The Registered Representative

A Registered Representative (RR) i s someone you would typically encounter at a company providing services to individuals who want to buy and sell securities.

In short, a stockbroker (although we seldom hear that title these days). This may be someone at an online broker or a more traditional “wirehouse.”

The firm that employs an RR is registered at the Securities and Exchange Commission (SEC).